Yield To Call
Yield To Call (YTC) is the annualized return an investor would earn if a callable bond is redeemed by the issuer at the first possible call date, assuming all coupon payments are made and the bond is redeemed at the call price.
Example: Example: A corporate callable bond with a 6% coupon and a first call date in 4 years; if the issuer calls at year 4, the YTC reflects the annualized return from today through year 4, including coupon payments and the call price.
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